The Power Of One

Property management systems move toward greater functionality.

By Rebecca Oliva, Technology Editor -- HOTELS Magazine, 1/1/2003

Hoteliers are welcoming a new generation of property management systems (PMSs) and enterprise solutions—ones that offer advanced capabilities such as integrated Web features, ease-of-use and multiple modules. These enterprise solutions feature a PMS at the heart of the system, while adjoining systems are combined through a central database. Features such as reservations, sales & catering systems, customer relationship management (CRM) systems are no longer additional expenses, but part of a completely unified enterprise package.

In recent months, major suppliers have partnered with one another to create a seamless system for hotels. Companies such as Ramesys Hospitality recently teamed up with Newtrade Technologies for its Web-based system integration and inventory distribution applications. Marketed under the name Entirety Connect, the technology will link a PMS with a hotel’s Web site, Internet portal and global distribution systems (GDSs). Springer-Miller partnered with Worldres.com to integrate its PMS with the Worldres system. Other PMS vendors have done the same, resulting in sophisticated systems that feature faster automation, easier access and greater functionality.

Whether it is a vast enterprise solution that functions as multiple systems, or a faster, user-friendly system, the capabilities of PMSs are changing. As a result, hotels are benefiting with increased reservations and reduced labor hours.

Greater Capability
When Boscolo Hotels, Padua, Italy, rolled out MICROS’ Opera Enterprise Solution with PMS, CRM system, central reservations, sales & catering, sales force automation and maintenance management capabilities, it saw five of its properties increase revenues by 10% within the first few months. Most of the increase is attributed to the simplified reservations process and connection of all systems to one database, according to Franco Grassi, director of information technology (IT) for Boscolo Hotels.

The Opera solution is a fully integrated property technology solution that shares customer profiles, groups, rates and packages, and room and function space inventory. The Italian hotel chain, which owns 14 high-end properties throughout Europe, has 10 hotels operating the MICROS system and intends to have all 14 running Opera by early 2003.

Boscolo chose the Opera system for the central database by which all properties are linked for simplified reservations processes. For now, though, the 10 properties are realizing the benefits of a single image inventory and the simplicity of dealing with only one vendor. “The system is more customer-oriented since it is running multiple modules,” Grassi says. “From a technical standpoint, we are able to see everything at once.”

Along with advanced features, Opera allows seamless integration with all major GDSs and MICROS’ point-of-sale systems. Grassi expects a full ROI in six months from the total rollout of all properties. For the long term, he says the multiple features will contribute to the brand’s growth, and he intends to exploit the built-in CRM system to increase revenues as the chain develops its customer database.

Selective Integration
With an enterprise system, hotels not only get the benefit of operating one system, but from dealing with one vendor. Much like Boscolo, Elegant English Hotels, London, chose Guestline’s RezLynx Enterprise solution for the advanced technology and all-in-one system. But it found the benefits of working with fewer companies to be a true asset. “Working with only one vendor is an additional benefit,” says Ashok Dhawan, CEO, Elegant English Hotels. “It is also a time saver.”

RezLynx Enterprise, an application service provider (ASP), offers single image inventory for multiple properties. The solution includes a PMS, CRS, head office management and online bookings module. “It really allows us to centralize everything,” says Dhawan, who has seen an ROI in only a couple of months. The ability to cross-sell between properties and have access to information pertinent to reservations has made all the difference, Dhawan says. “Our level of reservations has gone up, and we have made instant, strategic decisions based on the information available from the system,” he says.

Yet one of the system’s more noted features is the near flawless integration with a hotel’s Web site. “We spent a lot of money on the production of our Web site and booking engine,” Dhawan says. “We needed something to connect well to the online booking system, and this was a main feature of the system.” Dhawan says 50% of Elegant’s business is achieved through online reservations and inquiries. Since the rollout of the RezLynx system, the company has eliminated all manual reservations from the CRS to the PMS. Now, everything is automatic. “It has definitely reduced our manpower and made a tremendous impact on rate management,” he says.

Fine Tuning
But a system doesn’t have to be an enterprise solution to achieve some of the time saving and cost-efficient benefits. The Gold Coast Group, which owns and manages three properties in Chicago, including the upscale Talbott Hotel, upgraded its Galaxy/UX PMS to Galaxy Lightspeed in November 2002. The improved speed, added selling information and overall user-friendliness has made a world of difference at all three properties, according to Troy Strand, director of IT for The Gold Coast Group.

Although the system has many of the same features, Strand says the biggest benefit is the easy-to-use system configuration. “The PMS is laid out so logically that training is virtually eliminated,” Strand says. “One of the toughest problems we have always had being a small property is that we don’t have a training department. That is really the greatest benefit of the new system— as long as employees have some knowledge of how a hotel works, they can be up to speed in minutes.”

Since the implementation of LightSpeed, Strand says front desk and reservations operations have been virtually “error free.” The system makes reservation processes simpler because it adds necessary information to the front page of the system so reservation agents have it at their fingertips. “With Lightspeed, everything is online, and you can see what’s available, at a glance, before guests even finish their sentences. A few strokes of the key, and the reservation is complete.”

Strand estimates the reservation process takes 80% less time than before. And he says, because the system is so much quicker, the check-in process has become faster, allowing front desk employees to spend more time “speaking and conversing with guests instead of having their heads to the computer.”

But aside from being guest-oriented, Strand says the advanced technology and graphical face of the system enhances the overall appeal, as well. The homepage constantly upgrades itself with up-to-the-minute information such as house counts, department information and a guest comment log. And the system interfaces with all major hotel systems including a call-accounting system, back office, reservations system and sales & catering system.

While all three hotels are transitioning to the Lightspeed system, Strand says the UX system is running behind it to ensure a smooth shift. “If there is ever a problem with the new system or something we can’t figure out, we can switch back to our old system, and everything will be accurate and up-to-date.”